740
Fraternal b e n e fit associations.
E l i g i b i l i t y redetermination, e t c.
Policy d i s c ontinuance. B a s i c tables of premium rates. Life insurance.
Accidental death and d i s m e m b e r ment.
PUBLIC LAW 598-AUG. 17, 1954
[68
STAT.
that portion of any company's group life insurance in force on December 31, 1953, which is in excess of $100,000,000 shall be reduced by 25 per centum of the first $100,000,000 of such excess, 50 per centum of the second $100,000,000 of such excess, 75 per centum of the third $100,000,000 of such excess, and 95 per centum of any excess thereafter: Provided further, That the amount retained by or ceded to any company shall not exceed 25 per centum of the amount of that company's total life insurance in force in the United States on December 31, 1953: Provided further, That if, at the end of one year following the date of enactment of this Act, in the case of any issuing company or reinsurer which insured employees of the Federal Government on December 31, 1953, under policies issued to an association of Federal employees, the amount which results from the application of this formula is less than the decrease, if any, in the amount of such company's insurance under such policies, the amount allocated to such company shall, upon the first reallocation as provided in subsection (e) of this section, be increased to the amount of such decrease: And provided further, That any fraternal benefit association which is licensed under the laws of a State of the United States or the District of Columbia to transact life insurance and is engaged in issuing insurance certificates on the lives of employees of the Federal Government exclusively shall be eligible to act as a reinsuring company and may be allocated an amount of reinsurance equal to 25 per centum of its total life insurance in force on employees of the Federal Government on December 31, 1953. (e) The companies eligible to participate as reinsurers, and the amount of insurance under the policy or policies to be allocated to each issuing company or reinsurer may be redetermined by the Commission for and in advance of any policy year after the first, on a basis consistent with subsections (c) and (d) of this section, with any modifications thereof it deems appropriate to carry out the intent of such subsections, and based on each participating company's group life insurance in force, excluding that under any policy or policies purchased under this Act except in the case of companies covered in the third proviso of subsection (d), in the United States on the most recent December 31 for which information is available to it, and shall be so redetermined in a similar manner not less often than every three years or at any time that any participating company withdraws from participation. (f) The Commission may at any time discontinue any policy or policies it has purchased from any insurance company. SEC. 8. (a) Each policy or policies purchased under this Act shall include, for the first policy year, basic tables of premium rates as follows: (1) For group life insurance, a schedule of basic premium rates by age which the Commission shall have determined on a basis consistent with the lowest schedule of basic premium rates generally charged for new group life insurance policies issued to large employers, this schedule of basic premium rates by age to be applied, except as otherwise provided in this section, to the distribution by age of the amounts of group life insurance under the policy at its date of issue to determine an average basic premium rate per $1,000 of life insurance, and (2) For group accidental death and dismemberment insurance, a basic premium rate which the Commission shall have determined on a basis consistent with the lowest rate generally charged for new group accidental death and dismemberment insurance policies issued to large employers.
�
